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HomeMy WebLinkAbout2001-12-18 Business and Economic Development Committee Minutes � , Business and Economic Development Committee December 18, 2001 ' Minutes � Attendance: Councilors Rohman, Palmer, Farrington; Barrett, McKay, Dyer, Heitmann 1. Consent Agenda ' A motion was made and seconded to approve items a. and b. � a. Autharizing the City Manager to Apply for and Accept a Grant from the Maine Department of Transportation Under its Community Gateways Program 2002 b. Community Development Property Improvement Loan — Northeast � Occupational Exchange 2. Dock Use and Ticket Facilitv Lease Agreements — Mid Coast Marine � McKa told the Committee that Mid Coast Marine has expressed interest in Y bringing the River pog boat back to Bangor with a new name. The City would � lease dock space as well as space in the Harbor Master's office to sell tickets. The agreement is one season. The dock fee will be $500 for the season, and ' $275 for the Harbor Master's space. Mid Coast will also be responsible for ground and building maintenance including the public restrooms. A motion was made and seconded to approve the lease agreement as presented by staff. � 3. Heating System Repairs — Banqor Auditorium , Dyer said two leaks in one of the condensate return lines have been identified. Also the existing vacuum pump system is not functioning properly resulting in the loss of additional condensate. Staff is proposing a short-term fix to the � problem of using too much City water in the makeup water tank (approximately 2,100 gallons in two days at one point last week) which is causing corrosion in the lines as well as the boiler. The recommendation is to by-pass the vacuum ' system, since it would be extremely expensive to repair/replace, with a two- pump transfer system - one on the condensate side and one to pump into the make-up water tank. The ballpark cost is in the $15,-18,000 range. Currently ' there is $20,000 in the Bass Park capital account. If the proposed fix is not put into place, Dyer estimated an additional $3-4,000 annually in costs not including � sewer/ water bills. Dyer felt the 1985 boiler is in fairly good condition. Barrett said the repair will be funded out of borrowing done earlier, which is about to be reallocated as it has been frozen and needs to be spent to meet Federal trequirements. He suggested that perhaps a fund should be set up for � 1 � emergency repairs to the Bass Park Complex. Palmer asked Barrett to bring this � item to the Special Committee on the Future of the Auditorium. Committee approved staff's recommendation. ' 4. Lease Agreement—Waterfront Amphitheater � Negotiations are continuing for the lease with the goal to have it ready for the December 26"' Council meeting. McKay indicated there are a couple of , outstanding issues. Huchins objected to language requiring submissions and approval by the City Council for exterior materials. Mr. Huchins can either submit plans later for Council approval, in addition to other required approvals, , or have the plans submitted at this point for approval and stipulate that the amphitheater will be built in accordance with plans approved by the City Council. � Another issue is that, in event of default of the lease agreement, the City needs to have control of the project and materials to complete the project. Either the agreement will be done by December 31� or referred to the first Council meeting � in January. 5. Tentative Developer Status —Various City Properties � Rohman expressed a conflict of interest on this issue. The Committee voted that there was a conflict, and he was excused from the discussion. � Mr. Schneider has requested that the City grant him tentative developer status for 90 days on parcel B-13 on Exchange Street (located south of Fleet Bank , toward the river). This would provide him exclusive status as developer of this parcel until March 25, 2002. During this time, City staff would be authorized to , negotiate exclusively with him for the development of approximately 36,000 sq. ft. of professional office space and to prepare a complete development agreemer�t for consideration by the City Council. This City has granted tentative � developer status to potential developers on various sites in the past in order to give the developer some exclusive control over the availability of a site for a limited time period. By granting this status, the City agrees to deal exclusively , with that developer during the period of the agreement. The developer then has some assurances on which to expend funds for a specific proposal. Schneider has requested this status in order to develop a proposal for Penquis CAP which is ' looking for new office space, having outgrown its space on Harlow Street near the Federal Building. Staff was unsure as to whether Mr. Schneider would be the _ only developer expressing an interest in this parcel. It was left somewhat open � at the meeting as to how the City would proceed should additional interest develop. Although no vote was required, Councilors Farrington and Palmer � agreed to forward B-13 as a tentative developer site. McKay recommended a Council Order to be prepared designating Mr. Schneider as tentative developer. � � � ' If other parties come forward prior to the December 26�" Council meeting, the Order can be pulled with a statement indicating the City Council will go along with any developer submitting a proposal on the specific site. This action can be � taken without a Council Order. , 6. Ms. Bryant— Rehabilitation Loan This item was added to the agenda. April Bryant appeared before the Committee ' to request that the City agree to a subordination of a current rehab loan to a new and larger first mortgage designed to allow her to deal with a financial crisis involving her inability to make payments on a large amount of consumer debt. � Under Ms Bryant's proposal, she would have a new bank mortgage of $69,000 to pay off an existing mortgage of $32,000 with the additional amount to be used � for some improvements to the property but also to pay off existing consumer debt. Ms. Bryant owes the City approximately $22,000. The total mortgage amount, therefore, would increase from the present $55,000 to $91,000. The � mortgage amount would be secured by her home. A bank appraisal has been done indicating the home is valued at $92,000, an amount that our Assessing , Department has reviewed and finds to be at the upper end of what they believe the home could be sold for. The net result is that the City's mortgage, which would be in second position to the proposed mortgage, would be in a much less � secure position. There were a variety of concerns expressed as to whether the City should agree to the substantive terms of the proposal. Further, Since this request exceeded the authority of the Committee in that it would not comply � with our policy requiring that the City not be placed in a worse position and that any mortgage refinancing be limited to uses related directly to the property, the Committee did not take action and has referred the matter to the full Council for tconsideration. 6. Executive Session — Property Disposition —To Consider Offer to Purchase Lot 1-A , in the BIA Commercial Park ' Committee went into executive session for discussion of Item 6. Following the executive session, the Committee voted to decline the offer based � on the nature of the proposed use and limited investment involved. � , � '